Meat + Poultry - October 2004 - 47

maintenance guy in the plant isn't always able to perform the neces- The lease also preserves the company's line of credit for growth in othsary maintenance," which is why many customers pay a little extra for er areas. "We are pleased with the leasing option," Burger says. "While
access to FMC's service technicians.
they shoulder the burden of ensuring that the equipment performs opOther companies, including American Packaging Capital and Co- timally, we can take advantage of any upgrades offered."
M&P
lumbia Leasing U.S.A. also offer financing options on meat processing
We would like to hear from you-
and packaging equipment.
your comments and questions
about this article are welcome.
George Krzesinski, vice president and treasurer for OSI Industries,
E-mail the author at: jcrews@sosland.com
Inc., says his company appreciates sharing some of the risk on highend equipment that has been engineered for
precision. The machinery is not run-of-themill in sophistication or price. "We're talking
about very large, highly specialized machines
unique to our industry," Krzesinski says.
"Processors are looking to improve quality and reduce cost," says Jon Hocker, FMC
)()()
FoodTech's DSI product manager. One way
of accomplishing both is by opting for a fullservice lease. Typical agreements include a
four-year lease with an optional buyout at the
Change from dice to strip cut directly
end of the term. Hocker says operating leasfrom touchscreen
es are available on all of FMC's DSI portionSize change over in less than 5 minutes
ing equipment, which comes in four models
and range in price from $450,000 to about
User pro 'atm ble cut size and speed
$1.2 million. He says an estimated lease payprofile 's 1or each SKU.
ment on a machine costing about $500,000
would cost a customer about $22,000 per
Slice dice or strip cut sizes available
from 3/16" to over 4U
month in an operating lease arrangement,
but points out that specific applications and
Bilinqual user operator touchscreen
conditions affect prices.
"Some people have phobias about leases," says Hocker, but the numbers don't lie.
Processors going the traditional route of
buying a $500,000 machine and financing it
Qw-ntners
themselves over five years at 6 percent inter1
est are looking at throwing away more than
$90,000 in interest fees. "It helps if we go to
the customer's site and run the numbers with
them," Hocker says. Some processors prefer
.*
to lease equipment as a way to economically rollout a new product line. Others agree to
a one-year buyout option, to ensure that the
machine is doing all that was promised prior
to owning it. "The menu of financing options
FPMEXPO
is pretty unlimited," says Hocker.
#6443
About two years ago, FMC built and installed a portioner at Burgers' Smokehouse
in California, Mo. Rather than pay in full for
the machine like it normally would, Burgers'
president, Steven Burger elected to sign a
Hi est
full-service lease to ensure performance,
processing
around the clock technical support, software,
availability of parts and equipment upgrades.
Burger says the agreement meant a low ini1815 N.W. Wairenton Drive Warrenton, Oregon 97146 PH: 503-861-2273
tial capital expense and the luxury of not paysaIcs carruthers.us www.carruthers.us
ing depreciation or interest on the equipment.

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OCTOBER 2004

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Meat + Poultry - October 2004

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